We have seen numerous articles and discussions the last couple of years about a great reset. I am not sure there will be one but if there is I doubt it comes in the form most expect. While I would prefer a return to a gold standard with the imposed discipline that comes with it, it is unlikely the central banks, particularly the US Federal Reserve, would go that route. It is more likely they go with their CBDC’s and possibly add an additional twist. Instead of repeating the episode just completed with Covid, by introducing UBI and jacking up the deficit spending again, leading to even more inflation, hopefully they avoid that for now and go in a different direction. By using debt foregivness they can reinvigorate spending and keep things going without an immediate bout of hyper inflation. Depending on how it is structured would determine how much and for how long relative growth and prosperity could continue. There are no perfect solutions but it is probably worth a try.

Debt Jubilee – Richard Mills